Business

Hedging risks without derivatives

Article Abstract:

Non-derivative risk management techniques offer a lot of benefits to most business firms. In conditions wherein currency fluctuations are prevalent, businesses can match debts to receivables with bank loans in the local currency. The use of derivatives is also discouraged in prolonged exposures that could be better managed through expanding local plants. Another technique of hedging risks without using derivatives is to resort to commodity-linked bonds or to exercise the so called demand risk, where prices are linked to the availability of services.

Document and check fraud soaring

Article Abstract:

Fraud consultant Frank Abagnale estimated that as much as $12.6 bil a year in losses are posted by businesses and banks through check forgery and counterfeiting of negotiable instruments. The crime is driven by technological improvements in copiers which allows near-perfect copies of business transaction papers. A number of companies are taking a pro-active approach to stem such forgeries and counterfeiting, resorting to in-house printing of checks and other negotiable financial instruments to omit outside sources of such forgeries.